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A More General Sufficient Condition for A Unique Nonnegative Internal Rate of Return

Published online by Cambridge University Press:  06 April 2009

Richard H. Bernhard
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Extract

In a past issue of the Journal of Financial and Quantitative Analysis, Norstrπm [7] has presented a very simple sufficient condition for detecting whether a given pattern of cash flows over time has a unique nonnegative internal rate of return. Nor strum's condition is now widely cited in the literature and included in stock computer routines for analyses using the internal rate of return. See, e.g., de Faro [5] and Newnan [6].

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 14 , Issue 2 , June 1979 , pp. 337 - 341
Copyright
Copyright © School of Business Administration, University of Washington 1979

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References

REFERENCES

[1]Bernhard, Richard H. “On the Inconsistency of the Soper and Sturm-Kaplan Conditions for Uniqueness of the Internal Rate of Return.” Journal of Industrial Engineering, Vol. 18, No. 8 (08 1967), pp. 498–500.Google Scholar
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